[quote=UCGal]Ok… People who need mortgage mods are those that have mortgages they contractually committed to, but are now looking for reductions in interest or principal. Why is it considered bad to look at ALL of that persons assets as “fair game” before putting a mod through? If the person had non-retirement savings would that be exempt from consideration? Probably not.
Truthfully, I don’t see why 401ks should be considered as untouchable. Loan mods are a renegotiation of the contract – and there should be a give and take.
Hypothetical example: “Bob” has $500k in 401k. He has a mortgage for $400k. His house is now worth $350k. He’s looking for a loan mod. Why should the bank reduce his payments or principal when he’s got a significant chunk of money sitting there?[/quote]
I’m with you. These are the bank robbers who took the liar/ option only/ zero down “loan”…and NOW they bitch because they now actually have to provide 3.5% equity for the new lower loan amount? Holy ruck batman.
